Does Zynga Inc (NASDAQ:ZNGA) Have A Threat From King?
Zynga Inc (NASDAQ:ZNGA) is known across the world for the addictive games that it made in the past but consistent profits have always skirted the company. Very recently, there was some speculation that the company’s rival, King will be filing for an Initial Public offering in the United States. Though there is no official disclosure yet, some estimates indicate that the company has been raking in $1M-$3M in revenue every single day which takes its potential valuation upto $5B.
The rival games
The primary reason for this is that King is able to launch addictive and fast games. Users are also more than willing to spend real-money for the upgrades they want. After 10 years of its existence, King had received €34M from Index Ventures and Apax Partners, the private-equity firms, in 2005. Since then, the company has been a very profitable undertaking.
Zynga Inc (NASDAQ:ZNGA) on the other hand has been failing on the innovation front and many users are moving away from its games. It will have to pull up its act and make some truly impressive games that will keep users riveted to them and investors interested in the company.
In Friday’s trading, Zynga Inc (NASDAQ:ZNGA) rose by 2.27%. The shares opened at a price of $3.54, which climbed to an intraday high of $3.69 and dropped to a close of $3.61. Approximately 13.99M shares were traded on Friday while an average volume of 24.69 million shares were traded over a period of 30 days. The 52-week low of Zynga Inc (NASDAQ:ZNGA) shares is $2.09 and its 52-week high is $4.03. The company has a market capitalization of $2.90 billion.
About the company
Zynga Inc (NASDAQ:ZNGA) is the company that provides social game services. It is engaged in developing, marketing and operating online social-games as live-services that are played via social networking sites and the net as well as via various mobile-platforms.